Intel Buys Mobileye for $15.3 Billion 

March 15th, 2017 at 3:20 am
 


Intel has long been a leader in creating computer chips and processors. But it seems that it may be exploring other markets to expand into. Well, it may be looking into companies that is still connected to its main business but focused on a different technology. It may have found one that it sees may take its company into the future. It has bought Mobileye, a company involved in self-driving technology, for a reported $15.3 billion.

Mobileye is an Israeli tech company that initially partnered with Intel as well as BMW last year to build the next generation of autonomous driving cars. That partnership has led to Intel deciding to Acquire Mobileye. According to reports, an Intel subsidiary will be tendering an offer to buy all issued and outstanding ordinary shares from Mobileye for around $64.53 per share in cash. The value is estimated to reach $15.3 billion. According to Intel, the deal is expected to close after nine months.

Mobileye developed a range of technology involved in self-driving cars. With this acquisition, Intel is poised to bring autonomous driving technology under its umbrella. Not only that, the deal will also develop Intel’s relationship with a number of automakers. Intel is eyeing that self-driving cars is the future and is trying to get itself embedded into it. It makes sense since Intel can provide the hardware while Mobileye takes care of the software. With their partnerships with other car makers, it may just help herald self-driving cars into the consumer market. With the rash of developments in this area, it seems that it may only be a  matter of time before we see driverless cars finally hitting the streets and may just become the standard.

 

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